High-Yield Savings Accounts Offer Up to 5.50% APY Amid Fed Rate Cuts

Despite recent Federal Reserve rate reductions, savers can still benefit from historically high interest rates on select savings accounts.

Top high-yield savings accounts are currently offering annual percentage yields (APYs) between 5.05% and 5.50%, the highest in over two decades.
Pibank leads with a 5.50% APY, closely followed by Newtek Bank at 5.25%, with several other institutions offering competitive rates.
These rates are a result of the Federal Reserve's aggressive rate hikes in 2022-2023 to combat inflation, though recent rate cuts are expected to gradually lower savings account returns.
Digital banks and online accounts often provide the best high-yield savings options, featuring no fees and minimal balance requirements.
Savers are advised to consider certificates of deposit (CDs) to lock in current high rates, as further Fed rate cuts are anticipated in the coming years.